🛒 Shein’s Big Return to India
Shein is making a comeback in India by partnering with Reliance Retail, India's largest conglomerate. According to a parliamentary disclosure by Commerce Minister Piyush Goyal on December 17, 2024, Shein will operate as a technology partner, with Reliance controlling the operations through its subsidiary Reliance Retail Ventures Limited. This partnership marks Shein’s re-entry into a market it had to exit in 2020 due to India's ban on over 300 Chinese-linked apps.
📊 Local Data, Local Control
The deal requires all Indian customer data to remain in India, hosted on local infrastructure. Shein will have no access to this data. Security audits by government-approved cybersecurity auditors will ensure compliance. Such oversight is rare for retail deals, highlighting the sensitive nature of the agreement. These terms align with India’s stringent approach to Chinese-linked firms amid national security concerns.
🧵 Boosting India’s Textile Sector
Local manufacturers will produce Shein-branded goods for domestic and international markets under this arrangement. This strategy aims to boost India’s textile manufacturing sector and create jobs. The government hopes this setup will turn a global e-commerce platform into a growth engine for Indian industries while ensuring national security.
🚫 Context of the Ban
India banned over 300 Chinese-linked apps, including TikTok and UC Browser, in mid-2020 due to national security concerns. While Beijing criticized these bans, Shein’s approval process underwent thorough scrutiny involving the Ministries of Textiles, IT, and Home Affairs. This arrangement shows how exceptions can align with India’s interests while addressing security challenges.
Should more Chinese firms adopt Shein’s model?
